Zynga Inc (ZNGA) Earnings in Line with Estimates, Shares Tumble

The company posted earnings of two cents per share for the period, which was in line with Wall Street’s expectations. Net income came in at $18.1 million, while its operating cash flow surged to $35.1 million.

Mobile bookings were also higher at $186.5 million, a 15% increase compared to the year-ago mark. On an adjusted basis, earnings were $44.6 million, which beat Zynga’s own outlook of $30 million.

Ad revenue declined 1% compared to the year-ago figure to $46.4 million, while ad bookings declined 6% to $45.6 million. In total, the company’s bookings tallied up to $213.5 million, beating the company’s own guidance of $205 million.

Zynga’s mobile user pay for revenue posted a 44% gain compared to the year-ago mark, helping it reach a new high. Mobile amounted to roughly 87% of total revenue and bookings.

“We delivered significant growth in profitability in the quarter achieving net income of $18.1 million. This represents the first time since we went public that Zynga has delivered two consecutive quarters of net income,” said Frank Gibeau, CEO of Zynga during the company’s earnings call.

Our year-to-date cash flow from operations has more than doubled to $68.2 million, up from $32.3 million a year ago.”